Our advice to everyone is that never to apply for a loan from an unlicensed moneylender in Singapore, regardless of how small the amount is. The trouble you will get yourself into by taking up loan from unlicensed moneylender is unimaginable. In addition, you will get into trouble with the law as any activities associated with unlicensed moneylender is illegal.
The way licensed moneylenders in Singapore do business is that they will only approve a cash loan only if proper and complete supporting documents are provided to them. These include identity card, monthly payslips, hand phone bills, etc. On the other hand, the methods used by unlicensed moneylenders in Singapore can be very dubious and sometimes unreasonable. Below we highlight some of these common methods they use:
- Request for your SingPass user ID and Password. A licensed moneylender will not ask for your SingPass in order to process the loan application.
- Keep your identity card or any other personal documents which include passport, driving license or work permit.
- Ask that you sign on a blank or incomplete contract.
- Issue you the cash without passing you the copy of the contract as well as no explanation on the terms and conditions.
- Grant the loan to you without asking for any documents for verification.
- Failure to provide you the full principal amount that you have requested.
- Talk to you in a rude and abusive manner.
If you were to encounter any Singapore moneylenders that are unlicensed, you can report it to the Registry of Moneylenders.